The differentiated and ambidextrous influence of network flexibility on exploratory and exploitative partnership formations

Abstract

Purpose

The purpose of this study is to provide evidence on the impact of network flexibility and its ambidextrous influence on a firm's exploratory and exploitative partnership selection.

Design/methodology/approach

The authors develop our hypotheses based on the literature of network flexibility and draw on a sample of publicly listed firms in Taiwan semiconductor and optoelectronics industries. The authors collect our data from survey questionnaires and archival sources and examine our hypotheses by using the generalized linear model (GLM) approach.

Findings

The authors’ empirical findings show that configuration flexibility has a greater influence on exploratory partnerships, while manufacturing flexibility has a greater impact on exploitative partnerships. In addition, when firms are ambidextrous (i.e. have both types of flexibility), they are able to simultaneously obtain both exploratory and exploitative partnerships. The authors’ findings indicate that balancing network flexibility is critical when firms execute ambidextrous alliance strategies.

Research limitations/implications

The authors’ use of survey data to measure network flexibility may limit our observations related to network evolution. In addition, the authors’ use of public annual reports to capture firm partnerships may cause us to ignore informal relationships between partners.

Practical implications

The authors’ empirical findings suggest that the types of partnerships firms develop depend on which types of flexibility they possess. The results further suggest that decision makers have to find a way to develop a balanced strategy between network configuration and manufacturing flexibility when they would like to develop an ambidextrous alliance strategy.

Originality/value

The authors’ study advances the understanding in the literature on supply chain flexibility and its ambidexterity by connecting network flexibility and ambidextrous alliance strategy. The authors offer a guide to supply chain managers in the area of network design.

Citation

Huang, Y.-F. and Lu, L.-H. (2020), "The differentiated and ambidextrous influence of network flexibility on exploratory and exploitative partnership formations", International Journal of Physical Distribution & Logistics Management, Vol. 50 No. 6, pp. 577-599. https://doi.org/10.1108/IJPDLM-02-2019-0057